Indiana’s Insurance Industry I - Indiana Business …€™s Insurance Industry z IN BUSINESS 4...
Transcript of Indiana’s Insurance Industry I - Indiana Business …€™s Insurance Industry z IN BUSINESS 4...
November/December 2004 Vol. 5, Issue 6
INSIDE this issue:
IN THE SPOTLIGHT 1Indiana’s Insurance Industry
IN BUSINESS 4The Changing Employment Landscape
IN THE DATA CENTER 7People Do Move to Indiana
IN METRO AREAS 8The Fort Wayne Metro Area
IN THE WORKFORCE 11An Update on Indiana’s Working Women
Unemployment for September 2004
*Not seasonally adjusted
(continued on page 2)
Indiana4.8%
U.S.5.1%
IN the Spotlight:
Indiana is home to 179 insurance
companies, with another 1,660
licensed to do business in the
state in 2004. Back in 2001 (the latest
year available), the insurance industry
contributed nearly $3.8 billion to
Indiana’s gross state product.
Insurance premium tax receipts
totaled more than $178 million in 2002,
while Indiana insurance carriers paid
Hoosiers an estimated $2.61 billion
in direct income and $1.35 billion in
indirect or induced income.
Employment and Wages Looking at the 25 largest Indiana
industry sectors (as defined by three-
digit NAICS codes) reveals that
Indiana’s insurance industry is the
highest-paying nonmanufacturing sector
and the third best-paying sector overall,
according to Covered Employment and
Wage (CEW) data.
In 2003, the average weekly wage for
insurance workers in Indiana was $917,
ranking it 15th among all reporting
sectors and well above the Indiana
average of $642.
The insurance sector is made up
of a variety of subsectors that fall
into two main categories: insurance
carriers (such as life, health or casualty
insurance) and insurance agencies,
brokerages and related services. Here
are a few facts gleaned from the
Current Employment Statistics (CES)
survey:
In 2003, the Indiana insurance
industry employed 46,000 people,
ranking it 14th out of the 35 three-
digit industry sectors surveyed.
This employment size is slightly
larger than the sectors for motor
vehicle and parts dealers (42,300) and
machinery manufacturing (43,800),
Indiana’s Insurance Industry
90
95
100
105
110
115
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Em
plo
ymen
t In
dex
(19
90 =
100
)
U.S.
Indiana
Figure 1: Insurance Employment Index, 1990 to 2003
Insurance employment in Indiana grew 6% since 1990
Source: Indiana Department of Workforce Development and U.S. Bureau of Labor Statistics (CES survey)
CONTEXTIN November/December 20042
IN THE SPOTLIGHT
while slightly smaller than the truck
transportation (47,100) and primary
metal manufacturing (52,300) sectors.
Since 1990, Indiana insurance
employment grew 6 percent,
compared to 12 percent for the
United States (see Figure 1).
Growth in Indiana’s
insurance industry employment
lagged behind the country through
1994, but then strengthened through
1997 (see Table 1). Between 1998
and 2003, the United States grew 2.6
percent, while Indiana declined 5.2
percent.
Monthly job data for 2004 show
growth for both Indiana and the
nation, with Indiana slightly leading.
Company Rankings1
Employment: Although exact rankings
are not available, this information is
based on InfoUSA company listings for
employers with 2,000 or more workers
in Indiana.
Indiana’s largest insurance companies
by employment are Anthem Health
Systems, Conseco Services, Lincoln
National Life Insurance and
American United Life Insurance.
Also included are Safeco Insurance
Company of America, Golden Rule
Insurance, Liberty Mutual Insurance,
State Farm Mutual Auto Insurance
and State Automobile Mutual.
AON Service Corp., Key Benefit
Administrators and the Forethought
Group are the state’s largest
insurance agencies and brokerage
offices.
Adminastar Federal is the largest
third-party administrator of insurance
funds.
Assets: Indiana has 25
insurance companies
with over $200 million
in assets, ranging from
Lincoln National Life
Insurance with assets
of $67.8 billion to
Mennonite Mutual Aid
Association at $259
million.
Indiana’s top nine
life/health insurance
companies with
assets of $1 billion
or greater are
Lincoln National
Life Insurance,
American United
Life Insurance,
Anthem Health
Systems, Conseco Annuity Assurance,
Conseco Insurance, Safeco Insurance
Company of America, Golden Rule
Insurance, Liberty Mutual Insurance
Company and State Farm Mutual
Auto Insurance.
Indiana’s top five property/casualty
insurance companies with assets
of $1 billion or greater are Safeco
Insurance Company of America,
Golden Rule Insurance, Liberty
Mutual Insurance, State Farm Mutual
Auto Insurance and State Automobile
Mutual.
Revenue: While insurance companies
are not among the leaders when
considering the largest firms by
employment size, they are among
the state’s largest companies when
compared by revenue size.
The largest Indiana-based public
companies by revenue include
Anthem Health Systems (1), Conseco
Table 1: Insurance Industry Employment, 1990 to 2003
IN the Spotlight(continued from page 1)
Year Indiana Change U.S. Change
1990 43,400 2,016,100
1991 44,000 1.4% 2,048,200 1.6%
1992 43,600 -0.9% 2,039,500 -0.4%
1993 43,200 -0.9% 2,082,500 2.1%
1994 43,400 0.5% 2,118,800 1.7%
1995 44,400 2.3% 2,108,200 -0.5%
1996 45,700 2.9% 2,108,000 0.0%
1997 47,900 4.8% 2,143,600 1.7%
1998 48,500 1.3% 2,209,400 3.1%
1999 48,400 -0.2% 2,236,100 1.2%
2000 47,300 -2.3% 2,220,600 -0.7%
2001 47,100 -0.4% 2,233,700 0.6%
2002 46,300 -1.7% 2,233,200 0.0%
2003 46,000 -0.6% 2,266,100 1.5%Source: Indiana Department of Workforce Development and U.S. Bureau of Labor Statistics (CES survey)
Services (5) and Baldwin and Lyons
(46).
Among the largest Indiana-based
private companies by revenue are
American United Life Insurance (1)
and Farm Bureau Insurance (6).
Concentration, Taxes and CompetitionThe insurance industry is often
mentioned as a possible industry to
attract. Its employment levels show
long-term growth, and although it is
not immune to recessionary conditions,
the effects are less severe. The problem
is that the insurance industry, like
many service sector industries, is
closely linked to population and little
influenced by geographic conditions.
Of course, some exceptions exist.
States showing industry concentration
with respect to population include
Connecticut, Nebraska, Iowa, New
CONTEXTINNovember/December 2004
IN THE SPOTLIGHTIN THE SPOTLIGHTIN THE SPOTLIGHT
3
Hampshire, Minnesota and North
Dakota.
One common trait for these states
is their low tax rates for the insurance
industry. In some cases, they show
employment growth (Iowa and
Nebraska). Connecticut, however,
shows a sharp employment decline,
especially from 1992 to 1996.
Connecticut’s historic rates are not
readily available, but it appears the
state has lowered its tax rates and its
employment has been relatively stable
since 1997 and is slowly increasing.
Overall, tax rates appear to be
continuing to decline. Indiana is
lowering its premium rate and Iowa’s 1
percent rate is being phased-in between
now and 2006. The competitive nature
of lower premium taxes to attract new
businesses and employees is most
clearly seen in Colorado. Here, a new
1 percent rate is only for insurance
companies with headquarters or
regional home offices in the state.
While tax premiums are a fair
indicator of employment growth trends,
they vary over time. The insurance
industry is also a service sector that
is strongly influenced by changes in
population. This is especially true
for the agents and insurance brokers
component of the industry.
Another fact for consideration is
that many of the states with the fastest
growth also have the lowest wages.
This suggests that a large segment
of insurance sector job growth is lower-
paying, back-office functions and
not high-wage headquarter operations.
Even low annual average wages,
however, still run $40,000 and up.
What is Indiana Doing to Be Competitive?In 1998, the Insurance Industry
Working Group was created to
identify ways to improve the operating
environment for Hoosier insurance
companies.
As a result of work done by this
panel and other industry supporters,
several key pieces of legislation have
been passed in recent years:
An insurance premium tax
rate reduction lowering rates
incrementally from 2 percent to 1.3
percent by January 2006.
A tax bill ensuring Indiana-chartered
financial institutions are treated the
same as nonresident institutions.
The most modern demutualization
legislation in the country, establishing
the cleanest process for converting
mutual companies into stock
companies.
Also, several Indiana colleges and
universities offer specialty programs in
insurance industry skills:
Indiana State University (ISU)
students can earn an undergraduate
degree in insurance and risk
management. In 1999, the Gongaware
Center at the School of Business
was opened to support this degree
program, to educate the insurance
executives of tomorrow and to recruit
top high school students. ISU also
offers a distance education degree
program in insurance.
Ball State University offers degrees
in actuarial science, as well as
insurance. Both majors fall under
the umbrella of the Center for
Actuarial Science, Insurance and Risk
Management, which encourages its
faculty to conduct applied research
to benefit the insurance industry and
the people and businesses dependent
upon it.
Ivy Tech State College has 23
campuses across the state and offers
an insurance specialty associate
degree that prepares students to
perform customer service functions.
Graduates of the program are eligible
for employment in custumer support
positions, rating positions, claims
handling positions and others.
Notes1. The information used in this section comes
from both public (employment) and private sources (assets and revenues). This gives a broader perspective in understanding relative strengths of insurance sector companies, but there are some inconsistencies and gaps in the information. Employment information is for all companies, but confidentiality restrictions prevent exact rankings. Information in both the asset and revenue sections comes from the Indianapolis Business Journal 2004 Book of Lists. Asset information is for insurance companies only. Revenue data is for all Indiana-based companies. Data for Golden Rule is not listed for assets or revenue.
—Ted Jockel, Senior Economist, Indiana Department of Commerce
Employment levels in the insurance industry show long-term growth, and although it is not immune to recessionary
conditions, the effects are less severe.
CONTEXTIN November/December 20044
IN BUSINESS
The only constant is change.
This adage certainly applies
to both our economy and the
mix of industry jobs. Over the last
six decades, the composition of the
workforce has shifted toward service-
providing with a corresponding
shift away from goods-producing
employment. What is the extent of this
shift? That can be quantified by using
Current Employment Statistics (CES)
data produced by the U.S. Bureau of
Labor Statistics (BLS) and the Indiana
Department of Workforce Development.
The Shift: Gradual and PersistentAccording to average annual
national employment reported in the
reconstructed NAICS series, goods-
producing employment as a percent of
total nonfarm employment peaked at
44 percent in 1943, a time when our
country was busily engaged in efforts
related to World War II. By 1990,
however, that figure had dropped to
21.7 percent, or just under half of the
1943 percentage. The shift continued
and by 2003 the figure had decreased
to 16.8 percent. Stated in equivalent
terms, service-providing employment
increased from a low of 56 percent in
1943 to a high of 83.2 percent by 2003.
At the state level, NAICS series data
for average annual goods-producing
and service-providing employment
are only available from 1990. The
values represented in Figure 1 are
simply the difference between the 1990
and 2003 share of service-providing
employment within each state. That
is, they are percentage point increases
rather than percent increases. This
is an important distinction to make,
as it is possible to have an increase
in share, even if service-providing
employment decreases. In fact, that
happened in the District of Columbia.
By the same reasoning, there could be a
decrease in share over the period, even
when an increase in service-providing
employment is observed. That actually
happened in North Dakota.
How does Indiana compare to
all other states and the District of
Columbia on this measure? We fall in
the middle of the pack, ranking 25th
with a shift of 4.1 percentage points.
North Carolina had the greatest shift
at 10.4 percentage points, about 1.7
percentage points ahead of second place
Rhode Island. North Dakota is the only
state that had a decrease in share of
service-providing employment, ranking
last with a shift of -1.6 percentage
points.
More than 7 percentage points (6 states)
5 to 7 percentage points (12 states)
3 to 4.9 percentage points (18 states)
Less than 3 percentage points (15 states)
Figure 1: Change in Share of Service-Providing Employment, 1990 to 2003
Indiana ranks 25th, with a shift of 4.1 percentage points
The Changing Employment Landscape
Background on the Data Beginning with January 2003 reporting for states and areas and May 2003 reporting for the nation,1 the CES program switched to the North American Industry Classification System (NAICS), thus ending a long tradition of using Standard Industrial Classification (SIC).2 Although it is generally agreed that NAICS is a great improvement over the obsolete SIC, the change created a break in the time series — something we research analyst types dislike very much. The BLS has since converted SIC data to NAICS, and all NAICS series have been reconstructed back to at least 1990.3 Some NAICS series have been extended all the way back to 1939. Others go back to some year in between, depending on the characteristics of the original data.
There is no perfectly clean bridge from SIC to NAICS (nor from NAICS to SIC).4 The reconstructed data have limitations. However, for this article, I focus primarily on the simple dichotomy between goods-producing and service-providing employment5; and my confidence in the reconstructed data for this purpose is pretty high.
Source: U.S. Bureau of Labor Statistics (CES survey)
CONTEXTINNovember/December 2004
IN THE SPOTLIGHTIN THE SPOTLIGHT
5
IN BUSINESS
The Midwest Has the GoodsTwenty-five percent of jobs in Indiana
were in goods-producing industries
in 2003, nearly two percentage points
higher than second place Arkansas.
Figure 2 reveals that Indiana is one
of only 11 states that had 20 percent
or more of its employment in goods-
producing industries in 2003. All but
one of our neighboring states are in this
group, including third place Wisconsin
(22.8 percent), eighth place Michigan
(21 percent), ninth place Kentucky
(20.7 percent) and 10th place Ohio
(20.1 percent). Illinois had reduced its
share of goods-producing jobs to 17.3
percent by 2003.
Changing RanksHow do state rankings for the 2003
percentage of goods-producing
employment compare to those observed
in 1990? The top 11 states moved
little, with none changing more than
five ranks. Of the bottom 10, none
moved more than six places. Regarding
all the other states, however, it is a
completely different story. While the
average change in rank for the top 11
and bottom 10 combined was about 2.5,
it was 8.1 for the states in between. The
biggest movers were Wyoming, which
soared 23 places from 36th to 13th,
and Maine, which plummeted 19 places
from 14th to 33rd.
A More Detailed InvestigationNow that changes in employment at
higher levels of sector aggregation have
been described, it would be helpful to
dig deeper for details. Table 1 compares
the employment shifts for the United
States, Indiana and neighboring states
by BLS supersector. These values
represent the change in share of total
nonfarm employment from 1990 to
2003 in percentage points.
Other than showing the specifics of
how these regions fared over the period,
this table shows how supersectors
relate to one another. For this purpose,
there is intentional redundancy in
the table. For example, a shift in
share for the total private supersector
has a corresponding shift in the
opposite direction for the government
supersector. Also note that the shift for
goods production is equal to the sum of
shifts for the three supersectors within
the goods-producing group (differences
due to rounding). The same goes for the
service-providing group and its eight
supersectors.
Of great concern to Indiana is the
shift in manufacturing employment.
Nationally, manufacturing as a share of
total nonfarm employment decreased
by 5 percentage points over the 13-
year period. For Indiana, the downward
shift was 4.4 percentage points. The
only neighboring state to experience a
decrease greater than that of the United
States was Ohio, at 6.1 percentage
points. Kentucky is the neighbor that
had the lowest decrease at only 3.6
percentage points.
Note the slight negative shifts across
the board for the trade, transportation
and utilities supersector. While all of
these regions experienced an increase
in employment within this supersector,
those increases were not large enough
for the supersector to maintain its share
of total nonfarm employment.
Indiana has room for improvement
in the information supersector, as
its 0.4 point downward shift was the
largest among our peers. The national
share remained flat in this supersector,
whereas Indiana and its neighboring
states all sustained slight decreases.
All regions gained share in the
professional and business services
supersector and the education and
health services supersector. Indiana
20% or More (11 states)
17% to 19.9% (13 states)
14% to 16.9% (17 states)
Less than 14% (10 states)
Figure 2: Goods-Producing Employment as a Percent of Total Nonfarm, 2003
At 25%, Indiana ranks first in the percent of jobs that produce goods
Source: U.S. Bureau of Labor Statistics (CES survey)
CONTEXTIN November/December 2004
IN BUSINESS
6
excels in these areas, with a combined
upward shift of 5.3 points (difference
due to rounding). The upward shift for
the U.S was 5.1 points, which none
of our neighbors exceeded. Kentucky
had the lowest shift at 4.3 percentage
points.
Indiana had the greatest upward
shift (1.2 points) in the leisure and
hospitality supersector, although Illinois
was right behind with a 1.1 point
increase. Within the Midwest, only
these two states exceeded the U.S. shift
of 0.8 percentage points.
Embrace GlobalizationGiven the global nature of our
economy, it doesn’t appear that the
trends discussed here will reverse any
time soon. Although we are number
one in goods-producing employment
as a share of all nonfarm jobs, that
piece of the pie is shrinking. In terms
of “portfolio management,” this is
problematic. Indiana is at 25 percent
now, but what will its share be five,
10 or 20 years from now? Serving as
a backdrop are the issues surrounding
outsourcing, which continue to resonate
with managers who face the “make or
buy” decision and those whose jobs
are affected by those decisions. While
Indiana is maintaining a relatively
high proportion of goods-producing
jobs (through increases in exports,
for example), the situation begs these
questions: What competitive advantages
does Indiana hold due to its mix of
jobs, and can they be retained over
time? Which types of manufacturing
jobs are most worth fighting for, and
is the advanced manufacturing cluster
the best response to that question?
Given the state’s finite resources, how
much effort should it allocate toward
stimulating manufacturing activity
versus beefing up opportunities in
high skilled service-providing sectors?
Overall, how can Indiana leverage the
global trends linked to its economy?
Future issues will continue to explore
the industry mix in Indiana and the jobs
and pay yielded by those industries.
Notes1. See www.bls.gov/opub/mlr/2003/06/art2exc.htm
for a helpful excerpt from Monthly Labor Review Online, and links to related articles.
2. For more details about the switch from SIC to NAICS, read the IN Context series of articles at www.incontext.indiana.edu/topicindex.html#naics, and also visit the U.S. Bureau of Labor Statistics website: stats.bls.gov/bls/naics.htm.
3. The conversion ratios are available at www.bls.gov/ces/cesratiosemp.htm.
4. See www.census.gov/epcd/naics02/index.html for links to the various correspondence tables.
5. For a listing of the NAICS sectors and BLS supersectors that comprise goods-producing and service-providing employment, see stats.bls.gov/ces/cessuper.htm.
—Vincent Thompson, Economic Analyst, Indiana Business Research Center, Kelley School of Business, Indiana University
Supersector U.S. Indiana Illinois Kentucky Michigan Ohio Wisconsin
Total Private 0.2 0.4 -0.2 0.2 0.5 -0.1 0.1
Goods-Producing -4.9 -4.1 -4.6 -4.7 -4.0 -6.0 -4.0
Natural Resources and Mining -0.3 -0.1 -0.2 -1.3 -0.1 -0.1 0.0
Construction 0.4 0.4 0.5 0.2 0.7 0.3 0.6
Manufacturing -5.0 -4.4 -5.0 -3.6 -4.6 -6.1 -4.6
Service-Providing 4.9 4.1 4.6 4.7 4.0 6.0 4.0
Trade, Transportation and Utilities
-1.2 -1.2 -1.3 -0.5 -1.2 -0.4 -0.7
Information 0.0 -0.4 -0.2 -0.1 -0.2 -0.3 -0.1
Financial Activities 0.1 -0.3 -0.2 0.3 0.0 0.6 0.3
Professional and Business Services
2.4 2.6 2.3 1.7 3.0 2.3 2.1
Education and Health Services 2.7 2.6 2.2 2.6 2.0 2.4 2.8
Leisure and Hospitality 0.8 1.2 1.1 0.5 0.7 0.8 0.1
Other Services 0.3 -0.1 0.4 0.5 0.3 0.6 -0.4
Government -0.2 -0.4 0.2 -0.2 -0.5 0.1 -0.1
Source: U.S. Bureau of Labor Statistics
Table 1: Shift in Share of Total Nonfarm Employment by Supersector, 1990 to 2003
CONTEXTINNovember/December 2004
IN THE SPOTLIGHTIN THE SPOTLIGHT
People Do Move to Indiana
Indiana may have lost a seat in
Congress due to a relative decline
in population, but people do move
to Indiana. At a recent dinner, I sat
next to a gentleman who had moved to
Indiana in June. I myself had moved
here in July, so I thought, “Just how
many people are moving to Indiana?”
According to the latest American
Community Survey (ACS) data from
the U.S. Census Bureau, an estimated
125,735 people moved to Indiana in
2003 (see Figure 1). Most (36 percent)
moved from elsewhere in the Midwest,
while 29 percent moved from the
South, 18 percent from the West, 10
percent from abroad, and 7 percent
from the Northeast.
Update on the American Community SurveyThe ACS is a relatively new program
that is designed to give communities a
“fresh look” at how they are changing.
The intent is to have the ACS replace
the long form in future decennial
censuses. The Census Bureau had
planned to begin full implementation
of the ACS beginning in July 2004.
However, the bureau has temporarily
delayed the ramp-up due to current
uncertainties in the congressional
appropriations process for fiscal year
2005. Plans continue for conducting the
full ACS for housing units in 2005 and
for including data on group quarters in
2006.
The administration requested $165
million from Congress for the ACS, but
the House approved only $146 million.
Meanwhile, the Senate approved just
$64 million, not even 40 percent of
what was requested.
Because of these
uncertainties, the
Census Bureau has
temporarily delayed
the expansion to all
U.S. counties and
will continue the
current program. For
Indiana, this includes
collecting data for
Allen County, Fort
Wayne, Indianapolis,
Lake County, Marion
County, South Bend,
St. Joseph County,
and U.S. Congressional District 7. The
delay should have no impact on the
ACS estimates for 2004.
New Policy Regarding Sensitive DataOn Aug. 30, the Census announced it
would implement new procedures for
dealing with potentially sensitive data.
Special tabulations of data involving
sensitive populations (including
minority groups) that are requested by a
federal, state or local law enforcement
or intelligence agency will require
approval by an associate director at
the bureau. Previously, requests for
special tabulations were reviewed only
if the bureau was to be reimbursed
for the work. The change responds to
recent concerns about data provided
to agencies within the Department of
Homeland Security. The tabulations
are legal and the data is publicly
available on the Census’ website, but
Director Louis Kincannon feels that the
Bureau should be sensitive to public
perceptions of threats to confidentiality
or privacy. The full press release (with
a link to policy procedures) is available
at www.census.gov/Press-Release/
www/releases/archives/directors_corner/
002491.html.
Facts for Features: Thanksgiving Day, 2004To celebrate Thanksgiving, the Census
Bureau has released facts, figures
and trivia about turkey, cranberries,
pumpkins, corn, sweet potatoes and
more. Did you know that:
An estimated 263 million turkeys
will be raised in the United States
this year. About 46.5 million of
them will be raised in Minnesota.
Turkey, Texas, had 507 residents in
2003.
There are 20 places in the United
States named Plymouth. The most
populous is Plymouth, Minnesota
(69,164 residents in 2003). There
is one township named Pilgrim.
Located in Dade County, Missouri,
it has a population of 135.
Find more at www.census.gov/Press-
Release/www/2004/cb04ff-19.pdf.
—Frank Wilmot, State Data Center Coordinator, Indiana State Library
0
10
20
30
40
50
Northeast Midwest South West Abroad
Th
ou
san
ds
of
Peo
ple
Figure 1: Moving to Indiana, 2003*
Close to 126,000 people moved to Indiana in 2003
* The 2003 American Community Survey universe is limited to the household population and excludes the population living in institutions, college dormitories and other group quarters. Source: U.S. Census Bureau
IN THE DATA CENTER
7
CONTEXTIN November/December 2004
The Fort Wayne Metro Area
The Fort Wayne Metropolitan
Statistical Area (metro) consists
of Allen, Wells and Whitley
counties in northeast Indiana. Cities in
the region include Fort Wayne, New
Haven, Bluffton and Columbia City.
Those familiar with the federal
definitions of metros might notice
that the Fort Wayne metro actually
lost counties in the 2003 redefinition,
contrary to the expansion that occurred
in most other metro definitions across
the country. Adams, De Kalb and
Huntington counties, all formerly part
of the Fort Wayne metro, are not
growing any less metropolitan,
per se; rather, each became its
own micropolitan statistical
area (micro) covering Decatur,
Auburn and Huntington,
respectively. Those three,
plus the Kendallville micro
(Noble County), join the Fort
Wayne metro to form the Fort
Wayne-Huntington-Auburn
Combined Statistical Area,
of use to those desiring
statistics on the broader region.
The city of Fort Wayne is the
second largest in the state with a 2003
population of 219,495. That’s about
1,000 residents less than reported in
Census 2000, showing a drop of 0.4
percent. Returning to the three-county
metro definition of Allen, Wells and
Whitley, the region had nearly 400,000
people, with the vast majority (340,153)
living in Allen County.
At 2.5 percent, the metro’s growth
exceeded the state’s between 2000 and
2003. Whitley led the charge with a
3.1 percent growth, surpassing Indiana
by 1.2 percentage points. Of course,
this gain was less than 950 people.
Meanwhile, Allen County added 8,304
residents, a growth of 2.5 percent.
Combining the population loss in the
city itself with the gains made by the
county during the same time period,
this indicates a rather pronounced
suburbanization in the outskirts of Allen
County. Population change by township
perhaps illustrates the pattern best (see
Figure 1).
Projections from the Indiana
Business Research Center indicate that
The Area
Union94
Harrison-56
Union33
Lake441
Jefferson49
Milan613
Cleveland94
Lancaster65
Perry755
Liberty35
Smith167
Nottingham64
Chester36
Wayne-1,946
Jackson52
Richland77
Marion514
Aboite595
Adams356
Madison492
Jefferson53
Etna-Troy55
Eel River504
Jefferson463
Pleasant493
Columbia310
Rockcreek34
Lafayette483
Thorncreek37
Washington57
Springfield593
St. Joseph1,766
Cedar Creek609
Monroe346
Maumee387
Jackson304
Washington355
Scipio181
More than 20%10% to 20%5% to 9.9%0% to 4.9%Decline
Percent Change
Labels indicate township name and numeric change
Figure 1: Change in Population by Township, 2000 to 2003
The population continues to move toward the edges of Allen County
Source: U.S. Census Bureau
Fort Wayne NewNewNew
HavenHavHavHavHaven
Leo-CedarvilleHuntertown
Grabill
Woodburn
Monroeville
Bluffton
Ossian
Markle
Zanesville
Uniondale
Poneto
Vera Cruz
Tri-Lakes
Columbia City
Churu-busco
South Whitley
Larwill
Whitley Allen
Wells
69
469
30
33
24
24
224
30
33
IN METRO AREAS
8
CONTEXTINNovember/December 2004
IN THE SPOTLIGHTIN THE SPOTLIGHT
the Fort Wayne metro will grow 10.4
percent from Census 2000 levels by
2020, adding just over 40,700 residents.
Wells County is expected to lose a bit
of its metro share, with growth around
28 percent, compared to a 52 percent
growth in Whitley County and a 42
percent growth in Allen County.
Industrial Mix and JobsManufacturing accounted for 17.7
percent of Fort Wayne’s employment
in the fourth quarter of 2003. While
the largest piece of the employment
pie, manufacturing is a slightly smaller
piece than in the state overall (20
percent).
With the redefinition of the industry
sectors and conversion to NAICS in
2001, long-term industry changes were
not available for analysis. The Bureau
of Labor Statistics has now converted
some of the older SIC data to NAICS,
giving us a limited ability to look at
the recent history of some industries.
Figure 2 shows that, from 1990 to
2003, manufacturing jobs declined
17.2 percent in Allen County and 10.3
percent in Whitley County. Meanwhile,
Wells County gained 4.2 percent. This
yields a decline for the entire metro of
15 percent, compared to a 6 percent
drop for the state during that same time
period. Falling from a 1995 peak of
47,186 jobs, manufacturing accounted
for 36,566 jobs in the Fort Wayne
metro in 2003.
General Motors Truck Group and
BFGoodrich Tire both remain major
manufacturers in the region. GM
recently announced it is considering
investing $175 million into its Fort
Wayne plant, which makes Chevrolet
Silverado and GMC Sierra full-size
pickups, although that expansion is just
in the planning stages.
Franklin Electric in Wells County
(manufacturing submersible water
and fueling systems motors) is one of
just two Indiana companies to make
Forbes’ list of the 200 best small
companies in 2004, with a rank of 150.
(The other Indiana company, Cohesant
Technologies in Indianapolis, ranked
149th.) Another small company, Autoliv
in Whitley County (producing seat
belts, airbags and other automotive
safety products), recently announced
plans to invest $24.5 million to double
its facility size and triple its workforce
(currently about 320 employees) over
the next five years.
Health care and social services
was the next highest employer in the
Fort Wayne metro (14.2 percent by
fourth quarter 2003). The Community
Research Institute at Indiana
University – Purdue University Fort
Wayne indicates that Parkview Health
Systems and the Lutheran Health
Network are two of Allen County’s
largest employers.
21st Century LogisticsFort Wayne is targeting the
transportation, distribution and logistics
(TDL) sector for further development.
This year, the legislature passed
temporary tax abatements on new
logistics and information technology
equipment for businesses in six
counties along I-69, providing a useful
incentive to the metro in attracting and
supporting businesses.
TDL seems a good fit for the
Fort Wayne area because of the
existing infrastructure, the number of
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Wells
Whitley
Allen
Whitley County peaked at 5,351 jobs in 1997
Allen County peaked at 38,735 jobs in 1995
Wells County peaked at 3,565 jobs in 1999
Source: U.S. Bureau of Labor Statistics
Figure 2: Manufacturing Employment, 1990 to 2003
Fort Wayne’s manufacturing employment peaked at 47,186 in 1995
IN METRO AREAS
9
CONTEXTIN November/December 2004
manufacturers in the region who need
to transport their goods, as well as the
number of renowned TDL companies
already in the metro. Triple Crown
has ranked first among intermodal
service providers by the Logistics
Management and Distribution Report
for three straight years, and Kitty
Hawk, providing wholesale airport
freight transportation, has a state-of-
the-art sorting hub at the Fort Wayne
International Airport.
The benefits of TDL are that many
of its jobs are not susceptible to
outsourcing (tied as they are to physical
location and transportation), wages
are relatively high, and the sector is
expanding nationwide. Locally, SIRVA,
a global relocation and moving services
company, continues to invest and add
jobs at its Allen County operation.
Federal Express built a new 56,000
square-foot ground operations center
in New Haven in 2003. Triple Crown
and TransWorks (providing computer-
based transportation tools) are both
expanding. Those two operations
are subsidiaries of Norfolk Southern
Railroad, which has invested $2.7
million to build an additional half-mile
of track in New Haven to eliminate a
bottleneck where two tracks converged.
Major infrastructure enhancements
possibly in Fort Wayne’s future include
the I-69 expansion in southern Indiana,
which furthers the goal of a “NAFTA
Superhighway,” and the building of a
mostly new U.S. 24 to connect Fort
Wayne to the port in Toledo, Ohio.
Find additional information on the
transportation, distribution and logistics
sector throughout the state of Indiana at
www.indianalogistics.com.
Wages and IncomeThe average weekly wage in Fort
Wayne was $667 — $8 less than the
state — for the fourth quarter of 2003.
By sector, these wages ranged from
$216 in accommodation and food
services to $1,102 in management of
companies and enterprises. While those
managers make the most in the metro,
those wages are more than $200 less
per week than in the state overall. Only
four industries in the Fort Wayne metro
had average wages exceeding the state:
information, real estate and rental and
leasing, health care and social services,
and manufacturing. Figure 3 shows the
wage differences for the metro’s largest
industries.
Per capita personal income (PCPI)
in the metro area was $28,965 in 2002,
more than 3 percent higher than the
state per capita. PCPI in Allen County
($29,493) exceeded Wells County by
nearly $4,200 and Whitley County by
almost $3,000.
—Rachel Justis, Managing Editor, Indiana Business Research Center, Kelley School of Business, Indiana University
$0 $200 $400 $600 $800 $1,000 $1,200
Administrative and Support and WasteManagement and Remediation Services
Finance and Insurance
Transportation and Warehousing
Construction
Wholesale Trade
Educational Services
Accommodation and Food Services
Retail Trade
Health Care and Social Services
Manufacturing
Total
Indiana
Fort Wayne Metro
Source: Indiana Department of Workforce Development
Figure 3: Average Weekly Wages for Fort Wayne’s Largest Industries, 2003:4
The average weekly wage in Fort Wayne was $667 — $8 less than Indiana
Get the latest economic news from Fort Wayne at the Indiana Economic Digest
Want to know what’s happening in Fort Wayne’s economy today? The
Indiana Economic Digest at www.indianaeconomicdigest.net compiles daily
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story index to find updates on northeast Indiana by choosing either Commerce
Region 3 or a specific county of interest.
IN METRO AREAS
10
CONTEXTINNovember/December 2004
IN THE SPOTLIGHTIN THE SPOTLIGHTIN THE WORKFORCE
11
For every dollar the average
Hoosier man earns, the Hoosier
woman earns just two quarters,
one dime, a nickel and three pennies.
The following highlights this wage gap
and other statistics concerning Indiana’s
working women (those working full-
time year-round).
These data are from the U.S. Census
Bureau and the U.S. Bureau of Labor
Statistics and are based on reference
year 2003 unless otherwise noted.
The American Community Survey
is a household survey of 800,000
households nationwide with a time
series beginning in 2000 for states.
The Bureau of Labor Statistics data
are based on estimates from the
Current Population Survey of 60,000
households each month. Census 2000
data were collected on a one-in-six
household sample for earnings and
education (the long form).
Working Women Of the 2.4 million women age 16 and
older in Indiana, 62 percent are in the
labor force.
In 2003, Hoosier women working
full-time and year-round had median
earnings of $27,207, compared to
a median of $39,849 for men. That
is a wage gap of $12,642. To put it
in other ways, the ratio of women’s
full-time earnings to that of men’s is
.68 to 1, or 68 cents to the dollar (see
Figures 1 and 2).
Indiana’s working women are well-
educated: 53 percent of them have at
least some college or higher levels of
education, such as bachelor’s degrees
and master’s degrees (see Figure 3).
More than 50 percent of full-time
working Hoosier women work in
lower-paying occupations (Indiana’s
BLS median wages are shown in
parentheses): 24 percent in office or
administrative support ($24,120); 19
An Update on Indiana’s Working Women
73.8
74.675.3 75.4
68.369.5
69.0 68.3
64
66
68
70
72
74
76
2000 2001 2002 2003
United States
Indiana
Fem
ale
Ear
nin
gs
as a
P
erce
nt
of
Mal
e E
arn
ing
s
Figure 1: Ratio of Women’s to Men’s Earnings
Hoosier women earned 68 cents to the dollar
Source: American Community Survey, U.S. Census Bureau
16%
35%
28%
14%
5%
3%
13%
34%
32%
13%
6%
2%
0 5 10 15 20 25 30 35 40
Not a high schoolgraduate
High school graduate(includes equivalency)
Some college orassociate degree
Bachelor's degree
Master's degree
Doctoral orprofessional degree Female
Male
Figure 3: Education of Indiana’s Labor Force, 2000
53% of Hoosier women have some college or more
Source: Census 2000
Less than $9,000(12 counties)
$9,001 to $12,000 (42 counties)
$12,001 to $15,000 (28 counties)
More than $15,000 (10 counties)
Lake PorterNoble DeKalb
MarshallKosciuskoStarke
Whitley
Jasper
Allen
New
ton FultonPulaski
Wab
ash
Hun
tingt
on
Miami
Adams
WellsCass
White
CarrollBentonGrant
Black-ford JayHoward
TippecanoeWarrenClinton Tipton
Mad
ison Delaware
Fou
ntai
n Randolph
HamiltonMontgomery Boone
Ver
mill
ion
HenryWayne
Parke
HancockMarionHendricks
PutnamRush
FayetteUnion
ShelbyJohnsonMorgan
VigoClay Franklin
OwenDecatur
Barth-olomewBrown
Monroe
Dea
rbor
n
RipleySullivan
JenningsGreene
JacksonOhio
Lawrence SwitzerlandJefferson
Knox
MartinDaviess Scott
WashingtonOrange ClarkPike
GibsonDubois
Crawford
Harrison
Floyd
PerryWarrick
Posey SpencerVander-burgh
La Porte
St. JosephElkhart
Lagrange Steuben
Decatur had smallest while Porter had largest wage gap
Source: Census 2000
Figure 2: Difference in Male and Female Earnings, 2000
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Indiana Department of Commerce
IN the Workforce(continued from page 11)
percent in service jobs, such as health
care support ($21,110), food preparation
or serving ($15,080) or personal care
services ($17,840); and 12 percent in
sales ($19,530).
Table 1 illustrates how Indiana’s full-
time working women compare to those in
surrounding states. Earnings in Indiana
and Michigan may be affected by the
influence of high-wage auto jobs held
mostly by men.
Working Mothers in 2000 Seventy-three percent of Indiana women with
children under 18 were in the labor force.
Children with single mothers: 79 percent
of those children’s mothers were in the
labor force.
Thirty percent of single mothers with
children under 18, and 42 percent of
single mothers with children under 5,
lived in poverty (see Figure 4).
—Carol O. Rogers, Associate Director, Indiana Business Research Center, Kelley School of Business, Indiana University
Less than 30% (16 counties)
30% to 45% (37 counties)
45.1% to 60% (33 counties)
More than 60% (6 counties)
Figure 4: Single Moms in Poverty*
42% with children under 5 are poor
*Single mothers with children under 5; Source: Census 2000
Women’s to Men’s Earnings Ratios
Indiana 68
Michigan 70
Kentucky 72
Illinois 73
Ohio 73
United States 75Source: American Community Survey, U.S. Census Bureau
Table 1: Earnings Ratios, 2003